Growth through Diversity as an Economic Strategy

By Vijay Eswaran

Hatred and intolerance lead to violence and tragedies – Corporations have a duty to fight them

Intolerant violence is on the rise around the world. This rise
in intolerance and the accompanying
violence reflect the increased channelling of blame
towards migrants and ‘others’ for challenges that our
societies face. This is driven by a powerful emotion:
fear, and particularly the fear of the otherness.

To many, the answer seems to lie in a
political solution only. It is true that political rhetoric can contribute
to an atmosphere of intolerance, anger and hatred. Politicians throughout the
world need to set an example and embody respect of diversity and tolerance to
all faiths and ethnicities.

However, the rest of the society and
the business community in particular cannot just sit and wait for politicians
to act and lead as responsible role models. Each of us, in our respective
roles, should take action to promote a more open, diverse and tolerant
society.

It is high time business leaders argued that
diversity is also an extraordinary economic opportunity that brings success and
prosperity to all of us. The
cohabitation of people of different ethnicities, from different places, with
different experiences in cities and societies, is a key driver of innovation.
Societies which are diverse are more innovative because they encourage unique
collaborations and chance encounters.

If you look at the most innovative, disruptive
and therefore prosperous urban centres in world – New York, Dubai, London,
Singapore, Hong Kong – they all have one thing in common: they are all
international melting pots. Similarly, the most successful musical genres and
innovations – such as jazz, rock & roll or hip-hop – are all the direct
results of cultural amalgamation.

In my home country of Malaysia, ethnic, cultural
and religious diversity has been key to our success. Like many others, I was
speaking five languages by age 18, with friends from the Chinese, Indian and
Malay communities. Of all Asian nations, Malaysia has
by far the most diverse cultural and ethnic mix and as
a result has outperformed most of its regional partners with an average annual
GDP growth of 6.4% for the last 50 years.

The diversity dividend is not just born out on
macro scale. It’s also vital within company structures. A 2017
report showed that more
diverse companies announce an average of two extra products in any given
year. McKinsey has also studied the
strong positive correlation between financial
performance and diversity. It means more disruptive products,
business models, and ideas floating around the marketplace.

At my own company, the QI Group, our managing
board is composed of 13 directors of 7 different nationalities, and employees
spanning about 35 nationalities, with a gender ratio that’s almost 50:50. I
have always considered this diversity to be at the core of our success.

As innovation is taking place at a faster pace
than ever, we need to constantly adapt,
adjust and accommodate. More than ever, flexibility and versatility are
becoming the most important keys to success for individuals, companies and
countries alike, and a culturally diverse environment is the best way to
acquire these qualities.

Corporations, long the primary beneficiaries of
diverse society, bear a responsibility to step up and advocate for diversity
and tolerance. A brilliant example is Nike’s support of Colin Kaepernick
in the recent ad campaign. More than a marketing exercise, it
showed the world that one of America’s best-known corporations was
willing to stand alongside one man in his battle against racial injustice and
intolerance.

Corporations must also have their own
houses in order: workplaces and boardrooms must be the shining example, bringing
people from different backgrounds to work together.

We are not going to reverse the trend,
or halt hatred and violence, with one article, one tweet, or one marketing
campaign. But as a collective the corporate world must come together
and be much more engaged and vocal than it has been in its defence of a diverse
and tolerant society. It is an uphill battle, but peace and
prosperity depend upon it.

About the Author

Vijay Eswaran is an entrepreneur, speaker, and philanthropist. He is the Founder and
Executive Chairman of the QI Group of Companies, a multi-business conglomerate with
headquarters in Hong Kong, offices in more than 25 countries and customers in
over 100 countries. A well-known thought leader in Asia, he has
written and spoken extensively about business, leadership, personal
development, and life management.Eswaran’s latest bookTwo Minutes
From the Abyss is available on Amazon.